Wednesday, September 18, 2019

Puerto Rico fiscal board: Agreement with utility bond insurers reached

By on September 9, 2019

Syncora, National to support Prepa debt-restructuring agreement

SAN JUAN – Puerto Rico’s Financial Oversight and Management Board announced Monday that, together with the island’s Fiscal Agency and Financial Advisory Authority (Aafaf by its Spanish acronym) and the Puerto Rico Electric Power Authority (Prepa), it reached an agreement with bond insurers Syncora Guarantee Inc. and National Public Finance Guarantee Corp. to join the Definitive Restructuring Support Agreement (RSA) that certain Prepa bondholders and Assured Guaranty Corp. reached earlier this year.

The addition of Syncora and National to the RSA provides “significant certainty to the restructuring not only of PREPA’s bonds, but to the transformation of PREPA to a modern, efficient power utility able to deliver clean, reliable and affordable energy to the people and businesses of Puerto Rico,” the board said.

The agreement with the bond insurers does not change the economic terms of the RSA, the panel added.

“The RSA has now been joined by holders of approximately 90% of uninsured bonds and all PREPA bond insurers,” the board said.